As the U.S. stock market experiences a rise, driven by strong earnings reports and anticipation of tariff news, investors are keenly observing potential opportunities amidst this evolving landscape. In such an environment, identifying undervalued stocks can be crucial for those looking to capitalize on market movements and secure long-term value.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| MINISO Group Holding (NYSE:MNSO) | $17.62 | $34.66 | 49.2% |
| ConnectOne Bancorp (NasdaqGS:CNOB) | $22.82 | $45.42 | 49.8% |
| Lantheus Holdings (NasdaqGM:LNTH) | $102.70 | $203.75 | 49.6% |
| Trade Desk (NasdaqGM:TTD) | $54.40 | $106.42 | 48.9% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.35 | $18.65 | 49.9% |
| Shift4 Payments (NYSE:FOUR) | $79.66 | $158.86 | 49.9% |
| Veracyte (NasdaqGM:VCYT) | $31.67 | $62.84 | 49.6% |
| BigCommerce Holdings (NasdaqGM:BIGC) | $5.27 | $10.36 | 49.1% |
| Verra Mobility (NasdaqCM:VRRM) | $21.99 | $43.04 | 48.9% |
| Roku (NasdaqGS:ROKU) | $68.14 | $135.48 | 49.7% |
Below we spotlight a couple of our favorites from our exclusive screener.
Ally Financial
Overview: Ally Financial Inc. is a digital financial-services company offering a range of digital financial products and services in the United States, Canada, and Bermuda, with a market cap of approximately $10.11 billion.
Operations: The company's revenue segments include $1.61 billion from Insurance operations, $546 million from Corporate Finance Operations, and $4.62 billion from Automotive Finance Operations.
Estimated Discount To Fair Value: 15.1%
Ally Financial is trading at US$33.21, below its estimated fair value of US$39.13, suggesting it may be undervalued based on cash flows. Despite a recent net loss of US$225 million for Q1 2025, earnings are projected to grow significantly by 70.2% annually over the next three years, outpacing the broader market's growth rate. However, profit margins have decreased from last year and the dividend sustainability remains questionable given current earnings coverage challenges.
Elastic
Overview: Elastic N.V. is a search artificial intelligence company that provides hosted and managed solutions for hybrid, public, private, and multi-cloud environments globally, with a market cap of approximately $8.79 billion.
Operations: The company's revenue is primarily generated from its Software & Programming segment, totaling approximately $1.43 billion.